On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a subdued note. The benchmark index fell 0.3% to 7,299.8 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to drop on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% lower this morning. This follows a mixed start to the week on Wall Street. In late trade, the Dow Jones has dropped 0.3%, the S&P 500 has fallen 0.2%, and the Nasdaq is trading flat.
Iron ore price surges
It could be a good day for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares after the spot benchmark iron ore price surged higher overnight. According to Metal Bulletin, the spot iron ore price has jumped 9.4% to US$135.03 a tonne. This was driven by supply concerns.
Oil prices charge higher
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have strong days after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$80.56 a barrel and the Brent crude oil price has risen 1.5% to US$83.64 a barrel. Oil prices have hit multi-year highs amid a rebound in global demand.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged lower. According to CNBC, the spot gold price is down 0.1% to US$1,755.1 an ounce. A strengthening US dollar weighed on the price of the precious metal.
Newcrest rated as a buy
The team at Goldman Sachs see a lot of value in the Newcrest Mining Ltd (ASX: NCM) share price. This morning the broker retained its buy rating but trimmed its price target on the gold miner's shares slightly to $30.50. This implies potential upside of 27% over the next 12 months. It commented: "NCM has the strongest balance sheet in over a decade, enabling it to fund value-accretive growth projects over the next 5-10 years and reducing project risk."
